Fundstrat World Advisors co-founder Tom Lee believes Bitcoin is poised for a 200% development over the approaching months, taking its worth to $150,000 per coin.
Lee made the assertion throughout an look on CNBC’s Squawk Field on Feb. 21, the place he mentioned the varied elements influencing Bitcoin’s worth, together with the function of ETFs, the upcoming Bitcoin halving, and shifts in financial coverage.
Lee additionally confirmed earlier predictions and stated he expects Bitcoin to achieve $500,000 per coin over the following 5 years.
“Sound cash”
Lee’s optimism about Bitcoin’s potential surge is partly primarily based on the expectation of easing financial insurance policies, which he believes will bolster danger belongings like Bitcoin.
Lee stated:
“Since you’ve bought demand enhancing with the ETF, and you’ve got the provision shrinking with the halving. And if financial coverage eases, which we anticipate, that’s supportive of danger asset.”
He additionally pointed to Bitcoin’s resilience and its current rally to cross $50,000 as causes to imagine {that a} vital drawdown is unlikely within the close to future.
Through the interview, Lee highlighted Bitcoin’s function as a “sound cash,” emphasizing its utility for traders as a retailer of worth, a superb danger asset, and its unparalleled safety features.
In keeping with Lee:
“[Bitcoin has] been an important retailer of worth. It’s additionally extremely safe. There hasn’t been a single fraudulent entry on the blockchain since inception.”
Lee added that roughly 6% of all transactions made by means of conventional banks are suspicious, in comparison with “0% on Bitcoin.”
Illicit exercise
Lee additionally addressed considerations about Bitcoin’s affiliation with illicit actions, arguing that whereas critics wish to level out its use in ransomware and different unlawful transactions, the underlying problem isn’t distinctive to Bitcoin.
He famous that conventional fiat currencies, notably the US greenback, are utilized in a a lot bigger quantity of illicit actions.
Drawing an analogy to pirates being the primary to make use of gold, Lee advised that Bitcoin’s adoption by criminals doesn’t detract from its worth or utility as a trusted asset. In keeping with Lee, society realized gold’s worth exactly as a result of
He stated:
“Right here’s a manner to consider it, criminals don’t belief anyone, however they belief Bitcoin.”
CNBC host Joe Kernen echoed Lee’s sentiments and stated that most individuals recognize Bitcoin as a result of it’s a sturdy retailer of worth that has confirmed its endurance, and pointed to the truth that 99% of all nefarious monetary exercise happens through fiat.
